Author: Cohub Business Setup Dubai

1. Trade Name Reservation Certificate: A document proving that your chosen trade name has been approved and reserved.
2.  Initial Approval Certificate: Obtained from the Department of Economic Development (DED) or the relevant free zone authority, this certificate signifies preliminary approval for your business activities.

3.  Memorandum of Association (MOA): A notarized document outlining the company’s objectives, activities, and details about the partners or shareholders.

4. Application Form: A completed application form for the commercial license, provided by the DED or the free zone authority.

5. Passport Copies: Copies of the passports of all partners or shareholders involved in the business. In some cases, a copy of the UAE residence visa may also be required.
6. Visa Page Copies: Copies of the visa pages of all partners or shareholders who are UAE residents.
7. Emirates ID Copies: Copies of the Emirates ID cards for all partners or shareholders.

8. Lease Agreement: A copy of the lease agreement for the business premises. This is required to verify the physical location of the business.

9. Ownership or Authorization Documents: For businesses with multiple partners, documents proving ownership or authorization to establish the business.
10. NOC (No Objection Certificate) from the Sponsor: If any of the partners or shareholders are sponsored by a UAE national, a No Objection Certificate (NOC) from the sponsor may be required.
11.  External Approvals (if applicable): Depending on the nature of your business, you may need additional approvals from external entities or government departments. For example, certain healthcare or educational activities may require approvals from the relevant regulatory bodies.
12. Payment Receipts: Receipts confirming payment of the required fees for the license application and other associated charges.

1. Incomplete or missing documentation is a common reason for denial. So ensure you have all necessary documents, including business registration documents, passport copies, proof of address, and any additional documents required by the bank.

2. Some banks may have restrictions on certain business activities. Therefore, verification of your business activities should comply with the bank’s policies. Certain industries, such as those related to gambling or high-risk financial activities, may face more scrutiny.

3. Banks may assess the risk associated with your business type or industry. An unfavourable business profile is a very common reason for rejection. Be prepared to provide a detailed business plan and demonstrate the legitimacy of your business. This includes showcasing a solid financial history, reputable partners, and a clear business purpose.

4. If your business or personal profile is associated with high-risk jurisdictions or activities, banks may be hesitant to open an account. Be aware of international regulations and ensure your business is not involved in activities that may raise red flags. Provide evidence of your business’s compliance with anti-money laundering (AML) and know your customer (KYC) regulations.

5. Some banks may require businesses to have a physical presence in the UAE. Without establishing a local presence, such as an office or a representative, to enhance your credibility and meet the bank’s requirements, the possibility of setting up your business gets harder.

6. If the source of your funds is unclear or questionable, it may lead to denial. Clear articulation of the source of your funds, especially if they involve international transactions is required as transparency is key to gaining the bank’s trust.

7. Poor personal or business credit history can be a barrier as a credit history with good standing is required. The address should not have any outstanding issues before applying for a business bank account.

8. Changes in local regulations or banking policies can impact the approval process. Staying un-informed about regulatory updates can lead to problems as the application must be adjusted accordingly.

1. 1. • Determine Elgibility 
      • Find a Local Sponsor
      • Select a Trade Name
      • Draft a Memorandum of Association (MOA)
      • Register the Trade Name and MOA
      • Lease Business Premises
      • Obtain Initial Approvals
      • Notarize Documents
      • Apply for an Initial Approval Certificate
      • Draft the LLC Agreement
      • Register with the Dubai Chamber of Commerce and Industry
      • Apply for a Trade License
      • Register for Taxation
      • Open a Corporate Bank Account
      • Visa Applications
      • Finalize Registration
      • Renew Licenses and Permits

1. Access to a Lucrative Market: Dubai mainland businesses can operate and trade anywhere within the United Arab Emirates (UAE). This allows you to tap into a broader and more diverse market, including the bustling cities of Abu Dhabi, Sharjah, and others.

2. Wide Range of Business Activities: Dubai Mainland provides a comprehensive list of business activities that cater to various industries and sectors. Whether you’re in retail, manufacturing, services, or technology, you’ll find a suitable category for your business.

3. No Capital Requirements: Unlike some Freezones in Dubai, Mainland businesses do not have strict minimum capital requirements. This flexibility allows entrepreneurs to start their ventures with minimal financial constraints which promotes business growth.

4. Strategic Location: Mainland companies can set up their offices in prime locations across Dubai. This includes the heart of the city, which offers excellent visibility, accessibility, and proximity to clients and partners.

5. No Currency Restrictions: Mainland companies are not subject to currency restrictions, making it easier to conduct international transactions and manage finances efficiently.

6. Full Repatriation of Profits: You can repatriate 100% of your profits and capital back to your home country without restrictions, contributing to your financial flexibility.

7. Flexibility in Hiring: Mainland companies have greater flexibility in hiring employees, including the ability to employ skilled workers and professionals from various countries. A diverse pool of talent and a highly skilled workforce is readily available for mainland companies, enabling businesses to access a talent pool from around the world.

8. Ease of Doing Business: Dubai continually enhances its business infrastructure and regulations to facilitate ease of doing business. The government has implemented several initiatives to streamline processes, reduce bureaucracy, and improve the business environment.

9. Access to World-Class Infrastructure: Dubai boasts world-class infrastructure, including state-of-the-art transportation and utilities, providing a conducive environment for businesses to thrive.

9.  Networking Opportunities: Dubai is a global business hub, hosting numerous international events, exhibitions, and conferences. This provides ample networking opportunities, potentially leading to valuable partnerships and collaborations.

To make this easy to understand, keep in mind there are two places in Dubai where an individual can start a business, mainland Dubai and the Freezone. The key difference between the two is that on the mainland, new companies will have to partner up with locals to start a business as per the established laws. In the free zone, an investor has 100% ownership of the business they wish to set up. To understand the differences more in detail, lets dive into understanding the main benefits and other advantages to setting up up a business within these economic zones 

Considerations and Restrictions

While mainland business setups offer numerous advantages, there are also some considerations and restrictions to bear in mind:

• Local Sponsorship: To set up a mainland business, you are required to have a local sponsor, who holds 51% of the company shares. This sponsor must be a UAE national or a company fully owned by UAE nationals.
• Licensing and Regulatory Requirements: Mainland companies need to adhere to specific licensing and regulatory procedures set by the UAE government, which may vary depending on the nature of your business activities.
• Higher Setup and Operational Costs: Compared to freezone setups, mainland business setups generally involve higher costs due to licensing fees, office rentals, and additional compliance requirements.
• Potential Market Competition: Operating in the mainland means competing directly with other local and international businesses, which can be challenging depending on your industry.

• • Choose a good name that you want to use for your company.

• • Select the type of activities that your business will partake in.

• • Specify the number of partners if you have any along with their nationalities.

• • Select a legal type for your company.

• • Choose from the many license types that are available to you that best suit your business.

• • Provide all the necessary license details that will be required while forming the license.

• • If your company has partners then add the necessary details of each partner such as their role in the company, contact details and address, personal identification proof and how much percentage they own in the company.

• • Certain licenses will require initial approval from your side to begin the process. Especially if you are to start a new business in a new location.

• • Location details will be mandatory for certain licenses.

• • Legal documents such as service contracts and MOAs will be required to be sent to the officials.

• • Upon finishing the above-mentioned processes you will receive your license.

• • Certain licenses will require additional approvals to work so make sure to submit the required documents and wait to get notified by an agent about the status of approval.